As someone who's spent countless evenings tweaking our family budget—usually once the kids are asleep—I know the importance of tracking expenses clearly and simply. Whether you prefer a notebook or an app (disclaimer: I'm biased, having developed a budgeting app myself), what matters is actually doing it. But what's better: digital or analog?
Analog bookkeeping – pen and paper still work
Pros:
- Simplicity: No apps to install, no software updates, just grab your notebook and go. My wife prefers this method because she likes seeing things clearly laid out in her own handwriting. There’s something satisfying about physically checking off expenses at the end of the month.
- Mindfulness: Writing down each expense manually can make you pause and reconsider your purchases. It's harder to ignore overspending when you’ve written "coffee and croissants (again) - €12" three times this week.
- Flexibility: You create your own system. No predefined categories.
Cons:
- Time-consuming: Writing things down takes time—something my evenings often lack after bedtime routines. And if you skip a few days, catching up feels daunting.
- Errors: Summing up numbers manually? Mistakes happen. You might find yourself recounting receipts.
- Backup: Lose your notebook, spill coffee, or let your 2-year-old near it, and months of data vanish.
Digital bookkeeping – efficient, but watch out for pitfalls
Pros:
- Convenience: Apps and spreadsheets automate the math, saving you valuable minutes—perfect when your free time feels like it barely exists.
- Accessibility: Your budget is in your pocket, easy to update while waiting at daycare pick-up. Plus, cloud backups keep data safe.
- Analysis: Want to quickly know how much you spent on groceries last year? Done in seconds. I personally appreciate this clarity—it aligns perfectly with our philosophy: financial simplicity.
Cons:
- Less mindful: The ease of one-click purchases can spill over to one-click budget entries. Sometimes, the act of manually noting an expense helps reinforce awareness of spending.
- Privacy concerns: While most budgeting apps are secure (mine certainly is), digital always means some level of online exposure. You need to trust your tools.
Our family’s approach
We’ve settled on digital for day-to-day tracking (yes, partly because it's my app), but analog check-ins at month's end. We spend 20 minutes reviewing our numbers together, making sure our joint account stays transparent and aligned with our values.
The best method? The one you’ll stick to.
I'd recommend trying both. Write manually for a month, then try digital for another. See what works best for your family—because in the end, it's not just about budgeting. It's about creating clarity, simplicity, and trust around your money.